Special Liquidity Scheme

SBICAP set up and managed a SPV to execute the scheme, a unique initiative for supporting NBFCs and HFCs.

The Government of India (GoI) launched the special liquidity scheme for NBFCs/HFCs as a part of the Atmanirbhar Bharat initiative spearheaded by the Indian Prime Minister.

The purpose of the scheme was to improve the liquidity position of NBFCs/HFCs through a Special Purpose Vehicle (SPV), and to avoid any potential systemic risk to the financial sector. The total corpus of INR 30000 crore was provided by RBI and guaranteed by the GoI.

SLS Trust, the SPV set up by SBICAP, was entrusted with implementing the scheme. The scheme was open for 3 months from July 1, 2020, to September 30, 2020, for making subscriptions by the Trust. The Trust’s period of lending (CPs/NCDs of NBFCs/HFCs for short duration) was up to 90 days.

In the limited period of 3 months, the Trust received 74 applications aggregating to INR 39219.50 crore from NBFCs/HFCs. The Trust’s investment committee approved 39 proposals worth INR 11120 crore for availing liquidity, and at the end of the scheme, 25 applications availed the facility with the Trust disbursing INR 7227 crore.
All investments made by the Trust were duly repaid by the end of the scheme and there were no defaults. Our efforts in executing the scheme, with the highest level of credit assessment and risk management while supporting NBCFs/HFCs, have been appreciated by the GoI.